Internet advertising to grow 15 percent, with display taking the lead
A new forecast from ZenithOptimedia tells us that global ad spend is likely to top $545 billion dollars in 2015. That may sound like a reason to celebrate but it’s actually a slight step down in growth compared to 2014. (4.9% in 2015 vs 5.1% in 2014)
Part of the reason for the decrease in the increase is the lack of large, global events in 2015. In 2014, advertisers took advantage of the huge audience that tuned in to follow the Winter Olympics and the World Cup but 2015 is going to be a quiet year. That’s good, we need the time to rest up because 2016 is going to be a wild one with the Summer Olympics, the UEFA European Football Championship and the US Presidential elections. Wow. The news media is going to have to hire a lot of extra help.
Display drives internet advertising
Internet is the fastest growing medium in advertising with 16.9% growth in 2014 and a forecast of 15% growth for the next two years.
Ten years ago, Internet was only 4% of global spend, now it’s 24%. Where’s all the extra coming from? Magazine and Newspaper ad budgets. These are the only two types of ads that are on the decline. Even radio showed a small increase but it’s nothing compared to the powerhouse that is online advertising.
Leading the charge is online is display.
Agencies are swiftly adopting programmatic buying, which allows them to target display ads accurately and efficiently. The technology has recently evolved to deliver better premium, brand-building experiences. This has provided a sharp boost to ‘traditional’ digital display, as well as video and social. Growth in traditional display leapt from 14% in 2012 to 18% in 2013, and we estimate it at 26% in 2014, its fastest rate of growth since 2007.
ZenithOptimedia says Paid Search will continue to rise due to advancements in search technology including better localization, detailed product ad options and mobile ad enhancements like click-to-call. That leads us nicely into this:
Mobile is growing six times faster than desktop advertising. Expected growth is 39% a year from now until 2017. Still, mobile adspend isn’t keeping up with the demand for mobile media so there’s plenty of unexplored territory here. Right now though, ZenithOptimedia says marketers are getting tripped up by the lack of screen space, the lack of cookies for retargeting and concerns about annoying users with intrusive advertising.
Facebook and Twitter have it figured out. Both social media networks have found ways to seamlessly slip advertising into the content stream and it’s working. Between them, they’ll take home 33% of all mobile ad spend in 2014.
Crave even more stats and facts about global adspend? Check out ZenithOptimedia’s “Advertising Expenditure Forecasts” report. It’s 11 pages of numerical goodness and it’s totally free.